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Digihost signs 2nd co-mining deal with Bit Digital

2021-07-26 11:05 ET - News Release

Mr. Michel Amar reports

DIGIHOST AND BIT DIGITAL ANNOUNCE EXPANSION OF STRATEGIC COLLABORATION TO FURTHER INCREASE COMBINED HASHRATES BY 2 EH

Digihost Technology Inc. and Bit Digital Inc. have entered into a second strategic co-mining agreement. Pursuant to the terms of the agreement, Digihost will provide certain premises to Bit Digital for the operation of a 100-megawatt bitcoin mining system to be delivered by Bit Digital for a term of two years. This expanded collaboration between Digihost and Bit Digital is expected to facilitate an additional increase in hashrate of approximately two exahashes (EH) between the companies and a total increase in hashrate between the two companies of approximately 2.4 EH, including the initial collaboration agreement that was previously announced on June 10, 2021.

Under the terms of the agreement, Digihost will provide power and management services for the operation of the miners. In consideration for these services, after paying Digihost a competitive rate for power, Digihost and Bit Digital will participate in a profit-sharing arrangement based on a fixed distribution formula. It is expected that the miners will be delivered and installed beginning in January, 2022.

Michel Amar, Digihost's chief executive officer, stated: "We are committed to build on and expand our strategic collaboration with Bit Digital, which based on current bitcoin metrics, is expected to deliver significant results through the overall increase in hashrate of 2.4 EH between the two companies. Our business strategy continues to be growth through the expansion of our mining infrastructure, vertical integration of green sources of energy and tactical partnerships with leading companies in the blockchain sector, while striving to maintain our focus on being an industry-leading ESG [environmental, social and corporate governance] company. We are also excited to share with the marketplace that we are currently in the process of establishing a research and development facility in Houston, Tex., which will serve as the technology headquarters for the company from where we plan to explore cloud computing, artificial intelligence and deep learning applications. The expansion into Texas fits with our objective of geographic diversification and access to top-tier human resources in the technology sector. We look forward to providing further updates on these most recent developments."

Bryan Bullett, Bit Digital's chief executive officer, stated: "By signing this agreement, we believe that Bit Digital has secured power and hosting sufficient to complete the migration of our current fleet to North America in full and additional capacity to accommodate expected miner purchases. As previously announced, we anticipate significant purchase activity in the coming months, due to spot market dislocation in China and our unique access to that market. This agreement with Digihost secures a key component of activating this opportunity and is expected to enable rapid deployment of newly purchased miners. We are delighted to build on our existing collaboration with Digihost and look forward to continued successes together."

About Digihost Technology Inc.

Digihost Technology is a growth-oriented blockchain technology company primarily focused on bitcoin mining. The company is currently hashing at a rate of 200 petahashes (PH) with plans to expand to a hashrate of 3.6 EH by the end of the first half of 2022.

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